Microsoft shares fell below the $400 threshold as investor focus shifts toward rising infrastructure costs. Capital expenditures for AI are surging, with costs reportedly growing faster than revenue. This trend has triggered market concerns regarding future margin compression.
Microsoft is also considering legal action against Amazon and its partner, OpenAI. The potential dispute involves Amazon Web Services (AWS) serving as a cloud provider for OpenAI’s enterprise platform. This arrangement may violate exclusivity terms in Microsoft’s partnership, creating new legal and competitive risks.